THE EFFECTIVENESS OF FISCAL POLICY IN (NEAR) LIQUIDITY TRAPS

Author(s): Harrison C. Hartman

This study finds support for the hypothesis that fiscal policy is effective in increasing real GDP during a near liquidity trap, where interest rates are close to zero. Three such economies are the U.S. economy during part of the Great Depression and World War II era and during the present time, as well as Japan in the early 2000s. If fiscal policy is more effective than monetary policy during a near liquidity trap, the author suggests that policymakers focus more on fiscal policy to stimulate recovery from the recent U.S. recession.

Author(s): José Villacís

The year 1916 saw the publication of one of the pioneering works of macroeconomics. Its author was Germán Bernácer. In it he describes for the first time the net availabilities present in the financial system. He also describes second-degree working capital. Neither topic is discussed or even noticed in contemporary economics. Bernácer's inclusion of these components in the basic equation, S = I, alters it significantly, providing it not only with numerical value but, more importantly, with a dynamic conceptual dimension. Savings equal money, as do availabilities, the latter being the monies not invested. Second-degree working capital as Bernácer conceived it comprises the payments made among entrepreneurs for added production flows. This paper analyses these two monetary and real concepts and their role in the basic macroeconomic equation.

UNDERSTANDING TAX COMPLIANCE: THE CASE FOR TAX PREPARATION FOR BUSINESS INCOME, RENTAL INCOME AND RELATED ISSUES

Author(s): Kevin E. Flynn, Lori Fuller and Peter Oehlers

In extant literature, there are few tax return cases appearing in journals. We present a complex case using a realistic scenario that is designed to be a second tax return assignment used in an individual federal income taxation course. The case is designed to teach students how to manually prepare a federal income tax return using the actual forms and schedules prepared by the Internal Revenue Service (IRS). This case is timely for two reasons. 1) Often, tax return assignments in textbooks involve concepts that a student has not yet learned. For example, a textbook assignment often includes itemized deductions and credits, even though these topics are typically taught towards the end of an individual tax course. 2) In addition, with the availability of information on the internet, students have greater access to solutions to textbook assignments. This case comprehensively examines concepts typically covered in the middle chapters of a tax text: business income and expenses, business casualty and theft losses, and rental income and expenses; while only reviewing information found in the early chapters of a text.

CPAS REACTION TO THE NEW CPA TESTING RULES: DOES THE REVISED TESTING FORMAT IMPROVE CANDIDATE QUALITY?

Author(s): Brian Heshizer and Curtis C. Howell

This study reports on the reaction of CPAs to the revised CPA examination. The new testing format adopted in 2004 allows each part of the examination to be taken separately (not all at once) and at the convenience (within a fairly broad timeframe and at many testing sites) of the candidate. Also, candidates must have 150 semester hours of college credit to sit for the exam. Two questions are addressed: has the new exam format improved the performance of candidates on the exam and has 150 hour rule improved the quality of candidates sitting for the exam. The opinions of a sample practicing public accountants (n= 63) are used to investigate these questions. A slight majority of respondents believed the new format and the 150 hour rule would improve the quality of those candidates who passed the exam. A higher percentage of respondents felt that the 150 hour rule would improve candidate quality than the percentage who believed the new testing format would have this effect. It seems that the practicing CPAs are hopeful that these changes will have a positive impact on candidate quality but are somewhat disappointed in the accounting knowledge of new CPAs as compared to themselves since more respondents felt that new CPAs were not as well trained as they were when they became CPAs. There is also the concern that the new exam format makes it easier to pass the exam and raises doubts about the quality of candidates passing under the new format. We conclude with discussion and comments on the study's results and suggest future research questions.

Keywords: Accounting, CPA, Candidate, Business Education.

HURRICANE AND DROUGHT IMPACTS ON BUSINESS ETHICS
Author(s): John M. Mankelwicz

HURRICANE AND DROUGHT IMPACTS ON BUSINESS ETHICS

Author(s): John M. Mankelwicz

This paper synthesizes a framework from well accepted analytical tools, such as Rest (1986), stakeholder analysis (Freeman, 1984), the Ilgen, et. al. (1979) model of feedback, Jones' (1991) issue contingent model, Ansoff's (1975) signal strengths, and Donaldson and Dunfee's (1994) Macrosocial Contracts approach. Hurricanes influence business ethics primarily through changes in the presence, salience, and activity of key stakeholders, rather than through changes in individuals' basic values. Contrasting hurricanes to severe droughts sharpens insight into the basic nature, impacts, and business ethics issues surrounding hurricanes. There are emergent issues at each stage of a hurricane situation, but issues involving government are the most serious. Further, there appears to be some logical ordering in the application of the traditional ethical approaches.

Keywords: Business Ethics, Crisis Management.

HUMAN RESOURCE CAPACITY BUILDING IN THE PUBLIC SECTOR OF BALOCHISTAN
Author(s): Jan Muhammad

HUMAN RESOURCE CAPACITY BUILDING IN THE PUBLIC SECTOR OF BALOCHISTAN

Author(s): Jan Muhammad

Today, the world has realized the strategic importance of human resource as crucial factor for the socio-economic development of a country. The accomplishment of national goals and objectives through the network of public sector organizations is directly indebted to the human resource potential. A capable human resource can miraculously increase the pace of development in a country if properly utilized. The aim of this research article is to build the human resource capacity in the public sector of Balochistan through a systematic analysis of the human resource capabilities for the organizational goals and objectives accomplishment. The main focus of the study is on the capacity development model to cater the organizations human resource needs in a dynamic environment. Modern organization has to constantly modify, adapt and orient its plans, principles, practices and techniques to keep pace with the fast changing environment and to prepare its employees accordingly. The study is descriptive in nature and mainly secondary sources of data are used.

Keywords: Human Resource Capacity: The capability of the organization's human resource to perform specific assigned task effectively and efficiently on continuous basis, Mission Statement: The long term vision of an organization, stating its reason for being, Government By Objectives: It is a process whereby superior and subordinate in a public sector organization jointly identify common goals and assigning responsibility to individuals and groups for accomplishment of those goals and assessing their contribution, Job Description: A simple, concisely written statement delineating the contents and essential requirements of a job, summarizing of the duties to be performed and personal requirement, Job Specification: A statement of essential skills, knowledge, abilities and other credentials that a person needs to perform the job.